Page 45 - RusRPTJul24

The United States will impose sanctions against companies from China for supplying chips to the Russian Federation on June 12. the administration of US President Joe Biden intends to announce the expansion of anti-Russian sanctions; several companies from China allegedly involved in the supply of chips to the Russian Federation will be subject to restrictions, Bloomberg writes , citing sources. One of the biggest changes will be how the US will enforce export license requirements for manufacturers or third-party sellers to sell chips and other items to Russian defence entities, agency sources said. The United States will identify third-party sellers and warn them that they are prohibited from sending chips produced under American brands to Russia. As noted, Washington will publish the addresses of eight companies in Hong Kong that will be subject to restrictions. On May 1, the United States also imposed sanctions against the Russian Federation, covering 29 individuals and 250 legal entities. The restrictions affected the Astra group , the Ural automobile plant, the Bryansk automobile plant, the Remdizel ship engine plant, the Oko design bureau, the Yaroslavl automobile engine plant Avtodizel, the Proton electronics plant, the Radiation, Chemical and Biological Troops protection of the Armed Forces of the Russian Federation, etc. Sanctions also included individuals and legal entities from China, Azerbaijan, Turkey, and Kyrgyzstan.
The US demands long-term sanctions against the Russian Federation from the EU in exchange for $50B in aid for Ukraine. The US is demanding guarantees from the EU that sanctions against Russia will be maintained in order to implement a loan mechanism that will provide Ukraine with a $50B loan secured by profits from frozen Russian assets. Sanctions are renewed every six months and require the unanimous consent of all EU countries. Washington, however, wants the EU to extend the sanctions responsible for blocking Russia from access to its assets until the end of the war in Ukraine, ensuring that the US would not have to bear full responsibility for the loan. However, this decision will also require the unanimous consent of all EU leaders, including Hungary. The White House wants an agreement to be reached before the G7 summit in Italy next week. Another option is for the EU and other G7 countries to provide bilateral loans to Ukraine secured by profits from the Russian assets held in their individual jurisdictions. This would require the EU to use funds from its common budget, which would also require the unanimous agreement of all EU countries.
Bloomberg reports that G7 and EU countries are preparing sanctions against banks in third countries that use Russia's Financial Messaging System (SPFS). The SPFS network includes 557 banks and companies, with 159 non-residents from 20 countries among them. This system is utilized by banks in China, Belarus, Armenia, Tajikistan, and Kazakhstan, among others. Some banks have already received notifications about the potential for restrictions on operations conducted through SPFS.
EU approves higher tariffs on Russian, Belarusian grain. This follows a proposal by the European Commission from March 22, designed to cut down Moscow's profits and shield the EU market.
The easing of EU sanctions on Russian metal will provide Putin with €1.5B for weapons. Despite numerous sanctions, the Russian economy is
45 RUSSIA Country Report July 2024 www.intellinews.com